The International Sustainability Standards Board (ISSB) released two Sustainability disclosure standards on June 26, 20231. IFRS S1 is “General Requirements for Disclosure of Sustainability-related Financial Information.”
There’s nothing like reading primary documents. Who has the time? Even if you read the words – but what do they mean for your company? This post – one of a series – is intended to help preparers understand the standards, what’s required, and how to prepare to comply2. “Preparers” includes anyone at an executive level or senior management. It includes anyone in functions (Environmental, HR, IT, Operations, Procurement, etc.) that are responsible for programs, and/or who provide information for disclosures. (Read More)
Memo to those hoping that an SEC will not require disclosure of Scope 3 Greenhouse Gas (GHG) emissions in a final climate disclosure rule: It won’t matter. Your organization will need to calculate and report Scope 3 emissions. It will be a massive undertaking. Continuing to postpone effort much longer may cost you, in terms of direct costs and indirect impact on company value. Read to understand the folly of inaction.
SEC proposed climate disclosure rules in March 2022 – fifteen months ago, at this writing. Several provisions caused uproar and gnashing of teeth; perhaps none so much as the requirement to disclose Scope 3 greenhouse gas (GHG) emissions. Many have deferred meaningful efforts to compile Scope 3 emissions, often expressing three types of hope. (Read More)
Doug Hileman is a primary author of “Achieving Effective Internal Controls over Sustainability Reporting (ICSR)” – supplemental guidance released by COSO. Douglas was the only non-CPA and the only ESG specialist among the six authors. This document will help bridge the divide between those who know internal controls (CFO, Accounting, Internal Audit) and those who don’t (Environmental, HR, Operations, Procurement, Real Estate, Safety … and everyone else). The download is available free here.
IIA’s GAM session was SRO, with more online. Doug and Edward Olson (Partner and [Canadian] National Leader for ESG) offered takeaways. Read more.
International Consortium of Investigative Journalists calls out KPMG. Social media provides thoughtful comments, including one about X-rays.
Doug says more.
I'm pleased to be leading this info-packed session provides background and trends on climate-related risks for Internal Audit, their sponsors and stakeholders. Real-time attendees got CPE, but you can still (Watch Now)
The Federal Trade Commission’s Green Guides are intended to safeguard consumers from false or misleading claims in the products they buy. The FTC revises the Guides every 10 years, soliciting public comments. DHC advocates for more protection of consumers and ethical businesses alike. Read more.
Accountants are entering the fray for trustworthy ESG reporting and disclosures, says Financial Times. Much is driven by GHG emissions inventories, and the anticipated SEC rule for climate disclosures. Will they stop there? Should they? What can other functions learn from accountants – and vice versa? , Read More.
SEC Commissioners, Staff, and Stakeholders:
Douglas Hileman Consulting LLC (“DHC” pr “Commenter”) is pleased to provide comment on the SEC’s proposed rule on climate-related disclosures, released March 21, 2022. DHC submitted public input on June 7, 2021, responding to Commissioner Allison Herron Lee’s request for public input. DHC supported SEC actions on climate-related risk then, as we do now.
(Click Here)
IIA Los Angeles Chapter (recorded)
This special webinar is a walk-through of the SEC Proposed Rule on Climate-Related Disclosures. An investment of ~37 minutes will make you conversant in all the key subjects of the proposal. Also with guest presenter Alexandre Rossin, President, Rossin International LLC. Watch here.
INTRODUCTION
The author suggests there are three core attributes of sustainability reporting that differ from financial reporting and disclosures.
Accountants, internal auditors, and assurance providers and others with experience in financial reporting and disclosures are becoming more involved in ESG reporting[1] and disclosures. There are already professionals who have involved in sustainability programs, reporting and reviews as they have evolved. Understanding these can help bridge the gap. It can also improve the effectiveness and efficiency of organization’s governance, strategy, risk management – as well as financial performance and positive impact in non-financial areas.
The IIA’s EHS Audit Center publishes Doug’s Knowledge Brief on risk-based annual EHS Audit Planning. Why it’s a good time to reconfigure your program, and the risks of not doing so.
(IIA EHS Audit Center Members) for more. If not a member, join – or contact us for guidance in your annual EHS audit plan
EHS Audit Performance Metrics Knowledge Brief. Industry survey and Doug’s distinctive perspectives can help drive next year’s audit plan.
VW got your attention – what took so long?
Insightful and provocative white paper on environmental fraud.
Fraud is any deceit committed by a person or group, for some type of gain, at the expense of others.
This Practitioner Insight outlines how it can occur, and how to prevent and detect it.
If your compliance, management and auditing program doesn’t consider it – it’s not complete.
Click HERE for the Practitioner Insight.
By Douglas Hileman, CRMA, CPEA, P.E
Douglas presented this topic at the June 2017 Western Division IIA Conference. Douglas Hileman Consulting was also a sponsor of this regional, well-attended event. This white paper was the handout for Douglas's session. For more information, please contact Douglas.
Download white paper here.
Douglas presented this topic at the June 2017 Western Division IIA Conference. Douglas Hileman Consulting was also a sponsor of this regional, well-attended event. This white paper was the handout for Douglas's session. For more information, please contact Douglas.
Download white paper here.
BROCHURE: Non-financial reporting (NFR) has far-reaching impact – for compliance, customer relations and business reputation. DHC’s innovative model contrasts how companies are managing NFR, and current expectations. This mis-match poses risk, and leaves opportunities on the table. Download this brochure, which includes a quick 5-question diagnostic - an initial step to find out how your organization is doing. (Download)
The International Auditing and Assurance Standards Board issued an exposure draft of General Requirements for Sustainability Assurance Engagements – International Standard on Sustainability Assurance (ISSA) 5000, inviting comments by December 1, 2023. Douglas Hileman Consulting LLC (DHC) submitted comments, with two topics of interest to preparers and users of these reports.
Why the push for assurance standards? Sustainability reports have been around for over 25 years. Sustainability factors affect companies’ prospects for obtaining capital, delivering financial performance, as well as their effect on the environment and society. They have matured over the years. Even so, the scope, content, metrics, and rigor leave much to be desired by users – notably investors. Some regulations, including the EU’s Sustainability Reporting Standards (ESRS) and California’s SB 253 (disclosure of greenhouse gas emissions) will require external assurance within a few years. Read More
